A combination of buoyant market conditions and low interest rates is largely responsible for driving up property values over the past 12 months according to RP Data’s Cameron Kusher. In this week’s Property Pulse, Mr Kusher reported that 275 suburbs now have a median house value of more than $1 million. For units, he said that the news isn’t that exciting, “just 8 suburbs share a median unit value of more than $1 million.”
Topping the list for houses (refer attached suburbs list), is Sydney’s Point Piper with houses recording a whopping median value now sitting at $5,817,581. Other Sydney suburbs making it to the top ten included: Woolwich, Darling Point, Centennial Park, Cremorne Point, Bellevue Hill. Peppermint Grove in WA, and Victoria-based suburbs, Deepdene and Toorak, also made the cut to the top 10.
Although with just 8 in the list of units where values reached over the one million dollar mark, it was Sydney that again scored top results in the list of best performers by exceeding the million dollar value mark. Included in the list of Sydney suburbs are Dawes Point, Point Piper, Darling Point, The Rocks, Millers Point and Huntleys Cove and Milsons Point. Brisbane riverside suburb Tennyson was the only other suburb outside of Sydney to make the top (refer attached suburbs list) Last week, Mr Kusher highlighted that just 12.4 per cent of all capital city houses and 1.7 per cent of regional houses sold in 2013, transacted for more than $1 million. For units it was 4.6 per cent of capital city sales and 2.3 per cent of regional unit sales which had a $1 million price tag.
Mr Kusher said that despite such significant media reporting about homes over $1 million, these actually account a very small portion of the overall sales within the market.
At a national level, RP Data reported that 275 suburbs (or 6.1% of suburbs with a reported median value), have a median house value which is greater than or equal to $1 million. Nationally, only 8 suburbs have a median unit value which is greater than $1 million, representing 0.4% of all suburbs.
According to Mr Kusher, the figures vary somewhat when looking exclusively at the capital city markets. “It’s important to remember that home values tend to be much higher in the capital cities and this is where the bulk of the national population resides,” he said.